Auditing Letter

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Auditing Introduction Letter
To: Apollo Shoes, Inc.
From: Lead Auditor Anderson, Olds, and Watershed (AOW)
Date: March 30, 2015
Subject: Auditing and Other Assurance Services Available
Dear Mr. Unum (Vice President of Finance),
Last week you meet with Arnold Anderson, CPA (partner in charge of the audit), Darlene Wardlaws, CPA (engagement manager) and me Ashely Bishop (lead auditor) you discuss with us Apollo Shoes, Inc. decision in dismissing your current engagement with Smith & Smith auditing firm. At AOW we are glad you decided to bring us abroad. This letter will include information regarding the services that Anderson, Olds, and Watershed is able to provide to our clients as well as the professional standards that auditors must meet during audits. Also this letter will outline the ethical implications of an auditor during the audit.
Auditing and Other Assurances Services Provided
Arnold, Olds, and Watershed offers three different types of audits to our client’s operational, compliance, and financial statements audits. As stated in meeting last week ‘according to the Sarbanes-Oxley Act 2002, we will need to test the effectiveness of Apollo’s internal controls’ (Apollo Shoes Inc. case study). In order for our auditors to test effectiveness of the company’s internal controls will need to perform an operational audit. Operational audit evaluates the efficiency and effectiveness of any part of an organization’s operating procedures and models (Arens, Elder, and Beasley p.36). When we perform an operational audit it is not limited to just accounting. “Operational audit includes evaluation of organizational structure, computer operations, production methods, marketing, and any other areas” (Arens, Elder, Beasley, p.36). We will make sure Apollo is following specific procedures, rules, or regulations set by a higher authority (Arens, Elder, Beasley,…...

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